<ul><li>For rich people, the their asset generates more than enough to cover expenses, with the savings reinvested into the assets. So assets continue to grow and they keep getting more rich.</li><li>"Compound interest is the 8th wonder of the world" - Consistently investing money will grow exponentially over a long period of time. Keep investing patiently and let the compound interest do its magic.</li></ul>

“Rich don’t work for money, they let money work for them.”

<ul><li>Pay well to the people generating your assets, than people giving you liabilities.</li><li>Trade properties with bigger properties.</li><li>Use money to make more money by generating more assets.</li></ul>

Generate assets

<ul><li>It should not be Savings = Income - Expense, it should be  Expenses = Income - Savings.</li><li>Rich buys luxuries last.</li><li>Think about paying yourself fast, not government taxes or bills.</li></ul>

"Pay yourself first"

<p>A good metric of Wealth is, if you stop working today, how many days will you survive with current expenses.</p>

Metric of wealth

Although we have been successful in our careers, they have not turned out quite as we expected. We both have changed positions several times-for all the right reasons-but there are no pension plans vesting on our behalf. Our retirement funds are growing only through our individual contributions. Michael and I have a wonderful marriage with three great children. As I write this, two are in college and one is just beginning high school. We have spent a fortune making sure our children have received the best education available. One day in 1996, one of my children came home disillusioned with school. He was bored and tired of studying. “Why should I put time into studying subjects I will never use in real life?” he protested. Without thinking, I responded, “Because if you don't get good grades, you won't get into college.” “Regardless of whether I go to college,” he replied, “I'm going to be rich.”

moneyandinvestments

Money & Investments

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Books

Kiyosaki is best known for his book Rich Dad, Poor Dad, the #1 New York Times bestseller. Kiyosaki followed with Rich Dad's CASHFLOW Quadrant and Rich Dad's Guide to Investing.

"Pay yourself first"

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Pay Yourself First

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Keeping The Budget